Drivers of environmental innovation - Vinnova

It can be observed that the material on environmental drivers of innovations is
limited. This study, therefore, covers much of the existing literature.
The identified material shows a strong bias towards policy instruments, rather
than market related and other drivers, and their effects on environmental
innovation. An explanation for this may be that the market as an important
driver of environmental innovation is a relatively new phenomenon and has as
yet not received much attention by researchers.
1.3 What is an environmental innovation?
Innovation can be defined in many ways. A definition commonly referred to is
that of Schumpeter: “the commercial or industrial application of something new
– a new product, process or method of production; a new market or source of
supply; a new form of commercial, business or financial organisation”
(Schumpeter, 1934). New is usually interpreted as new to the economy, and not
just new to a single firm. The diffusion of technology already on the market is
thus not included within innovation. Most of the literature identified in this
study is focussed on product and process innovations, and to a lesser extent on
organisational innovations.
Environmental innovations could in principle be defined in two ways: firstly by
the effects of the innovation on the environment and, secondly, by the intention
of the innovator to reduce the environmental impact of processes or products.
Innovations that are not driven by a conscious intention to reduce
environmental impact may nevertheless have this quality. An example might be
increased fuel efficiency of a car arising from the incremental improvement of
the motor. The prime motivation for such an innovation is most likely
performance or price considerations, but the effects on environmental
performance may anyhow be positive.
Hemmelskamp defines environmental innovation as an ”innovation which
serves to prevent or reduce anthropogenic burdens on the environment, clean
up damage already caused or diagnose and monitor environmental problems”
(Hemmelskamp, Forthcoming). Hemmelskamp also differentiates between endof-pipe
and integrated environmental technologies, where end-of-pipe
technologies are by their very nature incremental process innovations
(Hemmelskamp 1997).
Malaman defines a closely related concept, cleaner technologies, as: ”all
modifications in processes and products which reduce impact on the
environment, as compared to the processes and products which they have
substituted” (Malaman, 1996).
Both these definitions appear to focus on the effects of innovations rather than
on the intention. A problem with this may be deciding which innovations in
practise actually reduce the environmental impact of products and production.
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